Leases

12 Months Ended

Dec. 31, 2022

Note 6 – Leases

Operating Lease

Effective March 5, 2020, the Company entered into a sublease for approximately 11,200 square feet of office space located at 25B Vreeland Road, Suite 300, Florham Park, NJ. The sublease commenced on May 1, 2020 and will continue for a term of forty (40) months with an option to renew through October 31, 2027. As of December 31, 2022, there are eight (8) months remaining in the lease term. Upon inception of the lease, the Company recognized approximately $0.7 million of a ROU asset and operating lease liabilities. The discount rate used to measure the operating lease liability as of May 1, 2020, was 9.15%. Throughout the period described above the Company has maintained, and continues to maintain, a month-to-month lease for its research facilities at the Princeton Innovation Center BioLabs located at 303A College Road E, Princeton NJ, 08540.

Supplemental cash flow information related to operating leases is as follows:

	Year Ended December 31,
	2022		2021
Cash paid for operating lease liabilities	$	294,987	$	170,839

For the year ended December 31, 2022, the Company’s operating lease expense was $241,029.

Year ended December 31,
2023	$	239,470
2024		–
2025		–
2026		–
2027 and after		–
Total future minimum lease payments		239,470
Less imputed interest		(8,041	)
	$	231,429

Financing Lease

The Company has financed certain laboratory equipment as follows:

	Year Ended December 31,
	2022		2021
Cash paid for finance lease liabilities	$	423,880	$	–

Year ended December 31,
2023	$	74,096
2024		65,432
2025		65,432
2026		35,690
2027 and after		22,305
Total future minimum lease payments		262,955
Less imputed interest		(42,330	)
Remaining lease liability	$	220,625

The Company entered into four financing leases for laboratory equipment with a total cost of $423,880 with two to four-year terms and a capitalized interest rate of 9.15%. Each of the lease agreements include a bargain purchase option to acquire the equipment at the end of the lease term. The aggregate monthly payments are approximately $5,452.

Finance lease depreciation expense for the years ended December 31, 2022 and 2021 was $48,992 and $0, respectively.